18 T II i: c I r. A K i: v i e \v 



competing,' rfxiilc factory a few hours ride from the great dyostuff roiit(>rs of Europe 

 must lint l>e able to show l)y newspaper propaganda or othrrwisc that the American 

 manufacturer is oiiiittinj,' to use the best colors obtainable. It may i)e taken for jiranted 

 that this is one of the issues likely to be raised in connection with Cuba's larjie trade 

 in clotliinjr, bosi»'ry. niillinery, and textiles jjenerally. For in a tropical or subtropical 

 climate, brij^ht and fast colors play an important role, and failure on the part of Amer- 

 ican merchandise to meet the requirements in this regard will at once he used liy com- 

 petitors, some of whom, indeed, are reported to be using this argument already. 



In all considerations of the future of European trade, the relatively short distances 

 between the countries tlu'iiiselves is to be borne in mind, as well as the fact that export 

 trade is ah.solutely essential to practically all these countries. These circumstances 

 alone, to say nothing of the intluence of intermarriages and df lonu and intimate busi- 

 ness acquaintance, in many cases wholly unaffected by the war, will tend to put aside 

 the issues raised by the conflict to a greater extent than is perhaps generally believed. 

 Tliat a great textile concern, for example, in any European country would permit itself to 

 be crushed or crippled through .some sentiment that did not i permit it to obtain dye- 

 stuffs from a great color works across a boundary line a few hours distant by motor 

 truck need not be considered. If such sentiment existed in some rare case the dealer 

 in a near-by neutral cnuiitry conld readily solve the in-olilem of obtaining tb(> products 

 needed. 



IXTERUriTEI) SIIII'MENTS HURT TRADE RELATIONS 



One hears some com])laints in the Cuban market of nnich-delayed shipments from 

 the I'liited States, and of the ("incellalion of long-out standing orders, the substitution 

 of merchandise of wholly different kinds from that ordered, and of declarations of 

 manufacturers and exporters that they are forced to suspend further trade in Cuba in 

 certain lines in view of large home demands and the falling off in production. Some 

 of these delays and temporary suspensions are doubtless unavoidable: but the effect 

 upon our trade in these branches will nevertheless be unfortunate and will be likely to 

 extend beyond the mere branch in question. 



The dealer who. handling only imported merchandise, has widely advertised a cer- 

 tain line or perhaps enlarged or otherwise changed his place of linsiness to exhibit the 

 merchandise referred to, can but feel injured in the sudden cutting off for an indefinite 

 period of his supply of the line sold. Such action is certain to benefit competing mer- 

 chandise, which, when once taken up, will probably not be put aside again for the re- 

 sumption of American lines. In the interest of our trade in Cuba there should be as 

 few interruptions in shipments as possible. 



WIDESPREAD EFFECTS OF INDIVIDFAL LOSS OF FRESTIGE 

 The importance of holding a valuable customer in foreign trade is a subject upon 

 which European commerce and commercial literature have placed much stress. Such a 

 customer often becomes a valualde advertiser not only of his own line but indirectly of 

 other lines. If such a dealer, long associated with an important class of merchandise, 

 all at once drops this class and takes up competing goods from another country the 

 evil effects may extend to other goods of the same nationality. 



SOME EUROPEAN POLICIES FOR HOLDING CUBAN TRADE. 



Holding the good will of the trader and thereby holding his trade is a sound maxim 

 in foreign business. A European concern, now said to be filling a pre-war contract in 

 Cuba for a line of textiles at the pre-war price, while the same textiles are now selling 

 in this market for almost three times the price per yard named in the contract, 

 doubtless sees in such a course not only the carrying out of a contract but also the 

 holding of its customer. The same is probably true of another European concern 

 which is said to be filling a pre-war contract in Cuba at the price named in the con- 

 tract and receiving, as at par, currency which has depreciated by 75 or 80 per cent. 



Some flexibility in the terms of payment has doubtless always been found desir- 



